Peloton Takes a Victory Lap In Patent Infringement Case

Peloton Interactive and Flywheel Sports have settled a legal dispute over alleged technology theft and patent infringement.

The Verdict

• Flywheel acknowledged that it copied Peloton’s leaderboard technology and will pull the technology from its bikes within 60 days.
• Flywheel also agreed to drop its legal challenge to Peloton’s patents.

Why it matters: As the connected fitness wars intensify, this news helps to cement Peloton’s lead on a few fronts.

First, the company is sending a signal to its competitors: “if you’re infringing on our technology, we’ll see you in court.” With this win, they have a clear upper hand. Next, the leaderboard technology in question plays a pivotal role in Peloton’s ability to engage its users, contributing to a network effect, fostering an online community, and keeping members coming back for more. Protecting it is a must.

Finally, the victory appears to validate Peloton’s claim that, beyond manufacturing fitness equipment, they are, in fact, a tech company. Whether or not that’s enough to justify or sustain their multi-billion-dollar valuation remains to be seen.